Upper Austria to Launch Benefits Card for Asylum Seekers in July 2024

Upper Austria will introduce a benefits card for asylum seekers on July 1, 2024, as part of a pilot project with the Interior Ministry. The initiative, announced by Landeshauptmann Thomas Stelzer and Integrationslandesrat Wolfgang Hattmannsdorfer, aims to prevent the misuse of cash benefits and reduce the region's attractiveness to refugees.

The benefits card, modeled on a Mastercard, will be implemented in eight state and federal asylum facilities throughout Upper Austria. The project will be initially tested in the area around Steyr. The card will allow asylum seekers to withdraw cash to a limited extent, as many social supermarkets do not have ATMs.

The pilot project involves multiple organizations, with the Red Cross and Volkshilfe participating, while Caritas has opted to wait and observe the development before deciding on involvement. The Interior Ministry supports the project, which aims to set an example for the entire country.

Why this matters: This pilot project has broader implications for asylum seeker policies across Austria and potentially Europe, as it aims to prevent the misuse of cash benefits and reduce the attractiveness of certain regions to refugees. If successful, it could lead to a shift in how benefits are distributed to asylum seekers, with a focus on digital payment systems and more targeted support.

Integration Councillor Wolfgang Hattmannsdorfer has been a strong advocate for the digital payment system, citing concerns about the misuse of cash benefits. He mentioned that cash allowances were often sent back to the country of origin or used to pay smugglers. Hattmannsdorfer stated, "This aid from basic welfare benefits should not flow into the country of origin or be misused."

The current system involves paying cash benefits, which are often distributed using Excel spreadsheets. The new benefits card system aims to streamline this process and ensure that the funds are used as intended. Hattmannsdorfer hopes that this model will serve as a blueprint for the whole of Austria.

The introduction of the benefits card will take place in two phases. Initially, residents of Volkshilfe and Red Cross accommodation in the Steyr and Steyr-Land regions will receive the card. In the fall of 2024, the card will also be provided to refugees living in private accommodation.

Governor Thomas Stelzer emphasized the importance of ensuring that aid is used appropriately. He said, "We naturally offer those fleeing war and terror protection, security and the necessary support here on site. However, this aid must not be misused. A benefits-in-kind card is a good, secure solution - people get the help they need with the certainty that the support will be used as intended."

The benefits card is expected to simplify the process for organizations making payments and prevent abuses, including the payment of smugglers. Hattmannsdorfer remarked, "By introducing the benefits-in-kind card, we are sending an unmistakable signal and preventing abuse."

As Upper Austria prepares to implement this new system, the region hopes to set a precedent for other areas in Austria. The success of this pilot project could lead to broader adoption of the benefits card across the country.

Key Takeaways

• Upper Austria introduces benefits card for asylum seekers on July 1, 2024, to prevent cash benefit misuse.
• The card, modeled on Mastercard, will be tested in 8 state and federal asylum facilities.
• The project aims to reduce the region's attractiveness to refugees and set an example for Austria and Europe.
• The card will allow limited cash withdrawals and ensure funds are used as intended, not sent back to country of origin.
• The pilot project may lead to a shift in asylum seeker policies, focusing on digital payment systems and targeted support.